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Market Review - 08/09/2009 21:21 All times in GMT
Dollar declines broadly as risk appetite boosts demand for high-yielding assets
The greenback fell broadly against its major counterparts on Tuesday as investors’ remained hopeful on global economic recovery after weekend's G20 meeting in the U.K. and continued to purchase risky assets. High-yielding currencies like euro, aussie and kiwi reached fresh highs of 2009, while gold rallied above $1000 an ounce and oil rose above $70 a barrel.
After Monday’s sideways trading on U.S. and Canada holiday, the single currency traded narrowly in Asia session initially, however, price rallied in European morning after the release of German trade balance and export data (both turned out to be better than expected) and intra-day upmove gathered momentum after breaking last months high of 1.4448. Despite the release of weak German industrial production data afterwards, euro rose again in U.S. session to as high as 1.4535 before retreating.
Similar to euro, cable started its rally in European morning in line with the greenback’s broad-based selloff and the release of stronger-than-expected U.K. industrial and manufacturing production data (industrial production in July came out as 0.5% and -9.3% respectively, beating the forecast of 0.2% and –10.1% while manufacturing data came out as 0.9% and –10.1%, better than 0.3% and –11.1% in forecast), price latter rose to as high as 1.6590 at NY opening before a retreat occured due to profit-taking.
Gold rose above $1000 level an ounce to as high as 1006.90 while oil rallied above $70 a barrel due to market's optimism on economic recovery, boosting the purchase of risky assets (stock markets also showed gains).
Elsewhere, the three major commodity currencies also strengthened on the back of rising equities and gold as well as oil. Australian dollar, kiwi rallied to as high as 0.8658 and 0.6985 respectively against the dollar while the lonnie appreciated to 1.0674 before a retreat took place in late N.Y. session.
Economic data to be released on Wednesday include:
Nationwide consumer confidence in U.K.; Westpac consumer confidence and retail sales in Australia; leading indicators and machine tools orders in Japan; CPI and HICP in Germany; trade balance in U.K. and; housing starts in Canada.
Dollar declines broadly as risk appetite boosts demand for high-yielding assets
The greenback fell broadly against its major counterparts on Tuesday as investors’ remained hopeful on global economic recovery after weekend's G20 meeting in the U.K. and continued to purchase risky assets. High-yielding currencies like euro, aussie and kiwi reached fresh highs of 2009, while gold rallied above $1000 an ounce and oil rose above $70 a barrel.
After Monday’s sideways trading on U.S. and Canada holiday, the single currency traded narrowly in Asia session initially, however, price rallied in European morning after the release of German trade balance and export data (both turned out to be better than expected) and intra-day upmove gathered momentum after breaking last months high of 1.4448. Despite the release of weak German industrial production data afterwards, euro rose again in U.S. session to as high as 1.4535 before retreating.
Similar to euro, cable started its rally in European morning in line with the greenback’s broad-based selloff and the release of stronger-than-expected U.K. industrial and manufacturing production data (industrial production in July came out as 0.5% and -9.3% respectively, beating the forecast of 0.2% and –10.1% while manufacturing data came out as 0.9% and –10.1%, better than 0.3% and –11.1% in forecast), price latter rose to as high as 1.6590 at NY opening before a retreat occured due to profit-taking.
Gold rose above $1000 level an ounce to as high as 1006.90 while oil rallied above $70 a barrel due to market's optimism on economic recovery, boosting the purchase of risky assets (stock markets also showed gains).
Elsewhere, the three major commodity currencies also strengthened on the back of rising equities and gold as well as oil. Australian dollar, kiwi rallied to as high as 0.8658 and 0.6985 respectively against the dollar while the lonnie appreciated to 1.0674 before a retreat took place in late N.Y. session.
Economic data to be released on Wednesday include:
Nationwide consumer confidence in U.K.; Westpac consumer confidence and retail sales in Australia; leading indicators and machine tools orders in Japan; CPI and HICP in Germany; trade balance in U.K. and; housing starts in Canada.
